The December update for the Unreal Development Kit is available, adding support for development of iOS games in Unreal Engine 3. To help you get started, the latest version includes the full source code for Epic Citadel (along with another new castle map), so you can figure out how those impressive medieval landscapes came to be.

To further prove what's possible with the engine, Epic put together a technically impressive twin-stick shooter starring none other than Jazz Jackrabbit, star of Cliff Bleszinski's 1994 side-scroller of the same name. Check out screenshots of this proof-of-concept game in our gallery. Epic told Joystiq that it's currently just a demonstration; the company doesn't have plans to release it.

[Update: There's now a tutorial video featuring the Jazz Jackrabbit game, and a "sizzle" video for UDK, after the break.]